By , Andre Bourque
Published May 03, 2016
The old days of strong-arm sales tactics are long past. Consumer expectations have risen as prospects are armed with more product knowledge than ever before, and consequently, sales teams need to be smarter and more agile.
With data-driven, sales acceleration technology, companies bridge the gap between marketing and sales and increase productivity across the board. Improving sales effectiveness is about taking a continual process, not event-based approach. To do this, some aggressive sales teams are using the Sales Velocity Equation as a benchmark to cut costs, focus resources, and boost ROI.
According to the TAS Group, in the Sales Velocity Equation, #Deals represents the number of sales opportunities that are won or lost in a given time period, $Value represents the average value of those deals that you won, Win Rate represents the ratio of deals won to the total number of deals, and Length of Sales Cycle is the average length of time resources are being applied to a deal before that deal is won or lost.
In this sales acceleration model, length of sales cycle is the most important lever to adjust. Businesses can suffer in one of the top factors and still do well. Merely decreasing sales cycle length by 10 percent, while increasing each other variable by 10 percent, can increase sales by 47 percent.
So how are sales teams using this model? TAS offers best practices for each factor.
Related: This Sales Secret Can Help You Conquer Aggressive Negotiators
Successful selling organizations only work the right opportunities, and disqualify deals that don’t fit. Businesses should look to increase the number of deals by:
Successful selling organizations maximize each deal by thoroughly understanding customers’ needs so they offer every applicable product and service. To increase average deal size, maximize account penetration and guide sales people, businesses should look to:
Related: How to Increase Your Revenue Without Growing Your Sales Team
An effective sales process is one where a defined set of steps aligns with how your customers like to communicate, how they want to buy, and the necessary sales steps along the way. And it's paired with knowing where a business is in a deal compared to the competition. Businesses can improve their win rate by:
Achieving this relies on opportunity management methodology concepts to ensure a business' team is working on deals they can win. Organizations should look to shorten your sales cycle through:
This four-lever Sales Velocity Equation model allows businesses to change each variable in the equation, and observe its impact on revenue. A small change in any single variable can make a big difference in sales velocity.
Related: The One Secret You Need to Know to Increase Sales
https://www.foxnews.com/us/here-is-the-equation-for-increasing-your-sales-teams-success